Workflow
1 Glorious Growth Stock Down 47% to Buy on the Dip, According to Wall Street
WorkivaWorkiva(US:WK) The Motley Foolยท2025-08-05 08:19

Core Insights - Workiva's platform is increasingly essential for complex organizations managing multiple digital applications, simplifying data collection and compliance reporting [1][4] - The company reported strong Q2 2025 results, with a 21% year-over-year revenue increase, leading to a 32% stock price surge [2][8] - Analysts are overwhelmingly bullish on Workiva, with a high percentage recommending buy ratings and a significant addressable market of $35 billion [13][14] Financial Performance - Workiva generated $215 million in revenue for Q2 2025, exceeding management's forecast of $209 million, marking a 21% increase from the previous year [8] - The net revenue retention rate reached a multiyear high of 114%, indicating existing customers are spending 14% more compared to Q2 2024 [9] - The company had a record 6,467 customers at the end of Q2, with significant growth in high-spending customer cohorts [10] Market Position and Growth Potential - Workiva's expansion into ESG reporting since 2021 positions it well to capture a growing market as compliance requirements increase for small and midsized enterprises [6][7] - The company raised its full-year revenue forecast for 2025 to $871.5 million, reflecting confidence in continued growth [12] - The stock is currently trading at a price-to-sales ratio of 6.1, below its 10-year average of 7.4, suggesting potential for long-term investment [15][17]